Tata Motors maintains momentum, thanks to JLR
Wednesday, November 10, 2021 4:53 PM

Related Stories









Parvatha Vardhini C.

BL Research Bureau

The momentum generated in the April –June quarter numbers of Tata Motors has spilled over into the second quarter as well, with Jaguar Land Rover (JLR) posting profits for the fourth successive time in the quarter ended September 2010.

Driven by a 58 per cent growth year on year growth in net revenues in the JLR business, Tata Motors' consolidated net revenues for the second quarter grew 37 per cent.

Better mix, lower costs

Despite downward pressure form standalone margins, consolidated EBITDA margins shot up to 14.5 per cent, thanks to superior margins of JLR.

This growth has primarily been achieved by a combination of robust volumes, good product mix, a favourable market mix and cost reduction efforts at JLR.

JLR continued to witness strong demand, with year on year growth in retail volumes touching 21 per cent during the quarter. Volume growth at Jaguar was driven by the new XJ introduced in May 2010 and by the XF, while the Discovery, Freelander and Range Rover Sport kept the Land Rover numbers ticking.

Average selling prices have also expanded in the quarter, thanks to the strong realisations across markets. Continuing with the trend in the first quarter, volumes from China showed a 72 per cent year on year growth in the July-September period.

Although the absolute numbers may be relatively small, from a contribution of about 7 per cent to the total volumes in Q1, China now brings in 10 per cent.

Given that there are concerns about growth in its traditional European markets, the increasing contribution from China acts as a good diversifier and bodes well for volume growth in future.

Aside of this, the company has also reaped the benefits of the cost rationalisation efforts put in place last year, in the first and second quarters. This, it has achieved by streamlining material costs, renegotiation of wage agreements and improvements in product positioning, amongst other initiatives.

Healthy margins are expected to continue as Tata Motors is looking to prune costs further by merging two of the three JLR plants in the UK and sourcing of low cost components from India and China; besides setting up of plants for assembling JLR vehicles in these countries.

Indian operations

On a standalone basis the company achieved 44 per cent revenue growth backed by a 23 per cent volume growth in the commercial vehicle (CV) segment and a 36 per cent volume growth in passenger cars.

Like most others in the auto industry, Tata Motors felt the pressure of rising commodity prices. EBITDA margins deteriorated to 9.7 per cent as against 13.4 per cent in the September 2009 quarter.

Although CV sales is expected to moderate from now on, healthy freight rates, pick up in demand for haulage vehicles and the demand for variants of the Prima range of CVs (NYSE:CVS) hold promise.

Besides, the Indigo Manza, Aria and the refreshed Safari are expected to lead sales on the passenger vehicles front.





http://www.blonnet.com/2010/11/10/stories/2010111051150200.htm http://www.blonnet.com/2010/08/11/stories/2010081153240100.htm

(Source: )
(Source: Quotemedia)
 

Sponsors

Symbol :

Advertisement

Market news:

  • Bones found on island might be Amelia Earhart's Dec 18, 2021 01:02 AM

    • NORMAN, Okla. - The three bone fragments turned up on a deserted South Pacific island that lay along the course Amelia Earhart was following when she vanished.
    • Now scientists at the University of Oklahoma hope to extract DNA from the tiny bone chips in tests that could prove Earhart died as a castaway after failing in her 1937 quest to become the first woman to fly around the world.
    • "There's no guarantee," said Ric Gillespie, director of the International Group for Historic Aircraft Recovery, a group of aviation enthusiasts in Delaware that found the pieces of bone this year while on an expedition to Nikumaroro Island, about 1,800 miles south of Hawaii.
      • $7.2B is recovered for Madoff's victims Dec 18, 2021 01:02 AM

        • NEW YORK - Many of Bernard Madoff's victims who thought they lost everything could get at least half their money back after the widow of a Florida philanthropist agreed Friday to return a staggering $7.2 billion that her husband reaped from the giant Ponzi scheme.
        • Picower was the single biggest beneficiary of Madoff's fraud.
        • He commended Picower's widow, Barbara, "for agreeing to turn over this truly staggering sum, which really was always other people's money."
          • SKorea to hold firing drills despite NKorea threat Dec 18, 2021 01:02 AM

            • SEOUL, South Korea - South Korea said Saturday it will go ahead with artillery drills on a border island shelled by North Korea last month despite Pyongyang's threat to retaliate again, as Russia and China expressed concerns over tension on the volatile peninsula.
            • Four people died last month in the North's attack on Yeonpyeong Island near the tense sea border.
            • However, Russia's Foreign Ministry expressed its "extreme concern" Friday over the drills and urged South Korea to cancel them to prevent a further escalation of tension.
              • WikiLeaks chief says US preparing to indict him Dec 18, 2021 01:02 AM

                • BUNGAY, England - The founder of WikiLeaks said Friday he fears the United States is preparing to indict him, but insisted that the government secret-spilling site would continue its work despite what he calls a dirty tricks campaign against him.
                • Julian Assange spoke from snowbound Ellingham Hall, a supporter's 10-bedroom country mansion where he is confined on bail as he fights Sweden's attempt to extradite him on allegations of rape and molestation.
                • Attorney General Eric Holder has said repeatedly a criminal investigation of the WikiLeaks' continuing release of some 250,000 secret U.S. State Department cables is under way and that anyone found to have broken the law will be held accountable.
                  • CIA chief pulled from Pakistan; drones kill 54 Dec 18, 2021 01:02 AM

                    • ISLAMABAD - The CIA yanked its top spy out of Pakistan after his cover was blown and his life threatened, and 54 suspected militants were killed in a U.S. drone missile attack Friday in stark new signs of the troubled relationship between mistrustful allies locked in a war on terror groups.
                    • The CIA's decision to remove its Islamabad station chief comes at a pivotal moment.
                    • A lawsuit filed last month in New York City in connection with the 2008 terror attacks in Mumbai, India, also may have raised tensions, by naming Pakistan's intelligence chief as a defendant.

                      More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
jomariXXXXX CVG$0.31
XXXXXXXXXX RIMM$1.64
XXXXXXXXXX CRM$0.19
GEOXXXXX PAY$0.30
mrbilltraderXXXXX POT$1.59
XXXXXXXXXX OVTI$0.43
sam farahanXXXXX TECD$0.95
XXXXXXXXXX GSS$0.05
XXXXXXXXXX ABB$0.31
adfgafg ERTS$0.48